On January 1, Year 1, Marino Moving Company paid $48,000 cash to purchase a truck. The truck was expected to have a four year useful life and an $8,000 salvage value. If Marino uses the straight-line method, which of the following shows how the adjusting entry to recognize depreciation expense at the end of Year 3 will affect the Companys financial statements?

On January 1, Year 1, Marino Moving Company pald $48,000 cash to purchase a truck. The truck was expected to have a four year useful life and an $8,000 salvage value. If Marino uses the straight-line method, which of the following shows how the adjusting entry to recognize depreciation expense at the end of Year 3 will affect the Company's financial statements? Balance sheet Cash NA NA NA NA Assets + Truck - + NA + NA - + NA - + NA - Acc. Dep. | = |Liab. 30,000 NA 30,000 NA 10,000 = NA 10,000 NA + + + + + Equity 30,000 10,000 10,000 (10,000) Rev. NA NA NA NA Income Statement - Exp. = Net Inc. 30,000 = (30,000) - 10,000 = (10,000) - 10.000) = (10.000) - 10,000 = (10,000) Cash Flow Statement NA NA (10,000) OA NA c. Option A